The Reserve Bank on Monday issued a scheme 'RBI Retail Direct', a one-stop solution to facilitate investment in government securities by individual investors.
No fee will be charged for opening and maintaining 'Retail Direct Gilt account' with the RBI. However, fee for payment gateway, as applicable, will be borne by the registered investor.
As part of continuing efforts to increase retail participation in government securities, 'the RBI Retail Direct' facility was announced in February 2021 for improving ease of access by retail investors through online access to the government securities market - both primary and secondary - along with the facility to open their gilt securities account ('Retail Direct') with the RBI.
"Retail investors (individuals) will have the facility to open and maintain the 'Retail Direct Gilt Account' (RDG Account) with RBI," the central bank said, adding that the account can be opened through an 'Online portal' provided for the purpose of the scheme.
The 'online portal' will also give the registered users the facility to access to primary issuance of government securities, as well as access to NDS-OM.
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NDS-OM is RBI's screen based, anonymous electronic order matching system for trading in government securities in the secondary market.
The date of commencement of the scheme will be announced at a later date, the RBI said.
"The scheme of Reserve Bank of India (RBI) Retail Direct has been formulated as a one-stop solution to facilitate investment in government securities by individual investors," it said.
Retail investors can register under the scheme and maintain a RDG account, if they have rupee savings bank account maintained in India; Permanent Account Number (PAN), any 'Officially Valid Document' for KYC purpose; valid email id; and registered mobile number.
Non-Resident retail investors eligible to invest in government securities under Foreign Exchange Management Act, 1999 are also eligible under the scheme.
The RDG account can be opened individually or jointly with another retail investor who meets the eligibility criteria, the RBI said.
Government securities, for the purpose of the scheme, mean securities issued in form of stock by credit to SGL/CSGL account maintained with RBI. These include, Government of India Treasury Bills; Government of India dated securities; Sovereign Gold Bonds (SGB); and State Development Loans (SDLs).
On investors services, the RBI said registered investors can use the online portal for account statement, nomination facility, pledge/lien, gift transactions, and grievance redressal.
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source https://www.freepressjournal.in/business/rbi-launches-rbi-retail-direct-scheme-to-aid-investment-in-govt-securities-by-individuals
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